If you die after taking your pension, the following benefits will be paid:
Lump sum (Pension guarantee)
If you die within 5 years of retiring, a lump sum equal to the pension payments which would have been made during the remainder of the 5-year period will also be payable (disregarding future increases) less any spouse’s pension payable over the same period.
This is payable by the trustee on discretionary trust.
The Trustee decide who will receive the benefit but they will take account of your wishes so we recommend that you complete an expression of wish form.
Spouse's pension or Dependant's pension
If you die whilst receiving a pension your spouse or registered civil partner will receive a pension equal to 60% of the pension payable to you at the date of death ignoring any commutation for a cash sum you may have chosen to receive at retirement.
If you die without leaving a legal spouse or registered civil partner, a dependant’s pension may become payable at the discretion of the Trustee.
You have the option before you retire to exchange part of your pension for an additional amount of pension to be payable to a nominated dependant following your death.
The Plan will also provide pensions for your children.
The children’s pensions in total will be equal to 20% of the spouse or registered civil partner’s pension multiplied by the number of children, up to a maximum of three.
These pensions are payable for so long as they are:
a) under age 18; or
b) under age 23 but in full-time education or training approved by the Trustee; or
c) suffering from mental or physical disability which renders him or her, in the opinion of the Trustee, dependent upon you.
The children’s pension will be doubled if there is no spouse’s pension/registered civil partner/dependant’s pension or if the spouse’s/registered civil partner/dependant’s pension ceases to be payable.
These pensions will be distributed between pensionable children in accordance with the Plan rules.
For more information relating to the steps to be followed if death occurs after retirement, please refer to the ‘How to guide - Death of a pensioner’.